Financial watchdog to closely monitor accounting of derivative products
South Korea’s financial watchdog said Friday it will pay special heed to malpractices by companies here in their accounting of derivative products and others.
It’s one of four “key issues” to be closely monitored by the Financial Supervisory Service (FSS) in the accounting and audit sector next year.
The FSS plans to place an emphasis on the four fields, instead of conducting a “full-scope” inspection of corporate financial statements.
The other ones include the evaluation of unlisted shares and other nonmarketable assets and the credibility of regulatory filings on new business contracts.
The FSS will also focus on whether companies do fair accounting of the return and exchange of products sold.
“We have selected the four main issues based on this year’s most revealed cases,” an FSS official said. “We plan to induce firms with relevant issues to be prudent in preparing and creating balance sheets.”
Source: Yonhap News Agency
Related Posts
South Korea prosecutor seeks arrest of Samsung boss
ESMA to cooperate with South Korean Regulators on Central Counterparties (CCPs)
Asian stocks mostly higher; Chinese markets jump more than 2%
Hanjin Shipping to shut its operations in Europe
Company to pay a $50,000 penalty for illegally offering complex derivatives products to retail investors
